Navistar to Close Truck Assembly Plant in Texas

Navistar International Corp. said it intends to close a truck assembly plant in Garland, Texas, by the first half of 2013 as part of its efforts to cut costs, according to a report in the Chicago Tribune.

“Closing a facility is always difficult because of its impact on the many great people who’ve been part of our company,” Troy Clarke, Navistar president and chief operating officer, said in a statement. “But the fact is that Navistar has too much manufacturing capacity in North America, and we must take quick action to improve our business and position the company for long-term success.”

Navistar employs about 900 salaried, hourly and third-party temporary workers at the Garland facility. Production will be moved beginning in January 2013 to the company’s plants in Escobedo, Mexico, and Springfield, Ohio.

The plant closure is expected to reduce Navistar’s operating costs by $25 million to $35 million annually. The company’s overall goal is to cut costs by $150 million to $175 million per year.

The truckmaker, parent to Navistar RV, has already laid off about 800 salaried workers. Navistar expects those job cuts to save the company $70 million to $80 million annually.